Testimony issued by the Government Accountability Office with an abstract that begins "Long-term budget simulations by GAO and others show that we face large and growing structural deficits due primarily to known demographic trends and rising health care costs. Reducing the annual tax gap--the difference between what taxpayers timely and accurately pay in taxes and what they should pay under the law--could help the nation cope with these long-term fiscal challenges. The tax gap arises through the underreporting of tax liabilities, underpayment of taxes due or "nonfiling" of required tax returns. This testimony discusses the findings of GAO's recent tax gap report. It addresses the significance of reducing the tax gap, measuring the extent of the tax gap, collecting data on reasons why noncompliance occurs, and the Internal Revenue Service's (IRS) strategies for reducing the tax gap."

A letter report issued by the Government Accountability Office with an abstract that begins "Several provisions of federal law allow for or require certain federal benefits to be denied to individuals convicted of drug offenses in federal or state courts. These benefits include Temporary Assistance for Needy Families (TANF), food stamps, federally assisted housing, postsecondary education assistance, and some federal contracts and licenses. Given the sizable population of drug offenders in the United States, the number and the impacts of federal denial of benefit provisions may be particularly important if the operations of these provisions work at cross purposes with recent federal initiatives intended to ease prisoner reentry and foster prisoner reintegration into society. GAO analyzed (1) for selected years, the number and percentage of drug offenders that were estimated to be denied federal postsecondary education and federally assisted housing benefits and federal grants, contracts, and licenses and (2) the factors affecting whether drug offenders would have been eligible to receive TANF and food stamp benefits, but for their drug offense convictions, and for a recent year, the percentage of drug offenders released who would have been eligible to receive these benefits. Several agencies reviewed a draft of this report, …

A letter report issued by the Government Accountability Office with an abstract that begins "Between fiscal years 2001 and 2004, the Continued Dumping and Subsidy Offset Act (CDSOA) provided over $1 billion funded from import duties to U.S. companies deemed injured by unfair trade. Some supporters state CDSOA helps U.S. companies compete in the face of continuing unfair trade. Some opponents believe CDSOA recipients receive a large, unjustified windfall from the U.S. treasury. Also, 11 World Trade Organization (WTO) members lodged a complaint over the law at the WTO. This report assesses (1) key legal requirements guiding and affecting agency implementation of CDSOA; (2) problems, if any, U.S. agencies have faced in implementing CDSOA; and (3) which companies have received CDSOA payments and their effects for recipients and non-recipients; and describes (4) the status of WTO decisions on CDSOA."

Testimony issued by the Government Accountability Office with an abstract that begins "The Department of Veterans Affairs (VA) maintains partnerships, or affiliations, with university medical schools to obtain medical services for veterans and provide training for medical residents. In 2002, the Medical University of South Carolina (MUSC)--which is affiliated with VA's medical facility in Charleston--proposed that VA and MUSC enter into a joint venture for a new VA facility as part of MUSC's plan to expand its medical campus. Under the proposal, MUSC and VA would jointly construct and operate a new medical center in Charleston. In 2004, the Capital Asset Realignment for Enhanced Services (CARES) Commission, an independent body charged with assessing VA's capital asset requirements, issued its recommendations on the realignment and modernization of VA's capital assets. Although the Commission did not recommend a replacement facility for Charleston, it did recommend, among other things, that VA promptly evaluate MUSC's proposal. This testimony discusses GAO's preliminary findings on the (1) current condition of the Charleston facility, (2) extent to which VA and MUSC collaborated on the joint venture proposal, and (3) issues for VA to consider when exploring the opportunity to participate in the joint venture. VA concurred with …

A letter report issued by the Government Accountability Office with an abstract that begins "The Federal Aviation Administration (FAA) performs critical functions that contribute to ensuring safe, orderly, and efficient air travel in the national airspace system. To that end, it operates and relies extensively on an array of interconnected automated information systems and networks that comprise the nation's air traffic control systems. These systems provide information to air traffic controllers and aircraft flight crews to help ensure the safe and expeditious movement of aircraft. Interruptions of service by these systems could have a significant adverse impact on air traffic nationwide. Effective information security controls are essential for ensuring that the nation's air traffic control systems are adequately protected from inadvertent or deliberate misuse, disruption, or destruction. Accordingly, GAO was asked to evaluate the extent to which FAA has implemented information security controls for these systems."

A letter report issued by the Government Accountability Office with an abstract that begins "Since its creation, the National Aeronautics and Space Administration (NASA) has operated passenger aircraft services. These operations have been questioned in several prior audit reports. GAO was asked to perform a series of audits of NASA's controls to prevent fraud, waste, and abuse of taxpayer dollars. In this audit, GAO assessed (1) the relative cost of NASA passenger aircraft services in comparison with commercial costs, (2) whether NASA aircraft services were retained and operated in accordance with governmentwide guidance, and (3) the effectiveness of NASA's oversight and management of this program."

A letter report issued by the Government Accountability Office with an abstract that begins "In 2005, Americans will pay about $2.1 trillion in combined federal taxes, including income, payroll, and excise taxes, or about 16.8 percent of Gross Domestic Product (GDP). However, the amount of taxes paid does not reflect the total cost to taxpayers of the federal tax system. In addition to taxes paid, taxpayers also bear compliance costs and efficiency costs. Understanding the magnitude of these additional costs is important because every dollar spent on compliance and lost due to inefficiency represents a dollar that society could have spent for other purposes. In response to a congressional request for information on the magnitude of the compliance and efficiency costs of the current federal tax system, this study describes the nature of these costs, presents the difficulties associated with estimating them, and summarizes existing estimates of their magnitude. GAO did not make independent estimates of compliance or efficiency costs nor did we replicate any of the studies. GAO is not making any recommendations in this report."

Testimony issued by the Government Accountability Office with an abstract that begins "Each year, federal agencies spend billions of dollars to buy commercial products and services through the General Service Administration's (GSA) Multiple Award Schedules program. The program has grown significantly over the past several years. Currently, federal agencies can directly purchase, through more than 16,000 schedule contracts, over 8 million products from more than 10,000 commercial vendors. In fiscal year 2004, purchases from these contracts totaled more than $32 billion. The multiple award schedules program is designed to take advantage of the government's significant buying power. To maximize savings, GSA negotiates discounts that are equal to or greater than those given to the vendor's most favored customers. This testimony focuses on GSA's historic use of two proven negotiation tools to improve the pricing of schedules contracts--pre-award audits and postaward audits of pre-award information. Pre-award audits allow GSA to avoid potential overpricing by verifying vendor pricing information before contracts are awarded. Postaward audits allow GSA to identify overpricing of awarded contracts and recover overcharges."

Testimony issued by the Government Accountability Office with an abstract that begins "Advances in technology have led to rapidly increasing sales of new electronic devices, particularly televisions, computers, and computer monitors. With this increase comes the dilemma of how to manage these products when they come to the end of their useful lives. Concerns have been increasingly expressed that while millions of existing computers become obsolete each year, only a fraction of them are being recycled. Some have alleged that the disposal of used electronics causes a number of environmental problems. They note, for example, that toxic substances such as lead can leach from used electronics. They have also noted that computers and other electronic equipment contain precious metals that require substantial amounts of energy and land to extract. These metals, they say, can often be extracted with less environmental impact from used electronics than from the environment. In this testimony, GAO summarizes existing information on the amounts of, and problems associated with, used electronics. GAO also examines the factors affecting the nation's ability to recycle and reuse electronics when such products have reached the end of their useful lives. This testimony discusses preliminary results of GAO's work. GAO will …

A letter report issued by the Government Accountability Office with an abstract that begins "Federal agencies spend billions of dollars every year on information technology and are increasingly using performance-based contracting methods where agencies specify desired outcomes and allow contractors to design the best solutions to achieve those outcomes. Share-in-savings contracting is one such method under which a contractor provides funding for a project, and the agency compensates the contractor from any savings derived as a result of contract performance. The E-Government Act of 2002 authorized the use of share-in-savings contracting for information technology and required implementing regulations by mid-September 2003. The Office of Management and Budget (OMB) reported in December 2004 that no share-in-savings contracts had been awarded. The act's authority expires in September 2005. The act required GAO to assess the effectiveness of share-in-savings contracts. Because no such contracts have been awarded, GAO cannot provide an assessment. Instead, GAO reviewed the status of regulations and tools available to agencies in developing these contracts and identified the reasons agencies have not used the authority provided by the act. OMB and the General Services Administration (GSA) generally agreed with GAO's report."

Correspondence issued by the Government Accountability Office with an abstract that begins "The Debt Collection Improvement Act of 1996 (DCIA) allows the federal government to collect state debts from federal payments to contractors. However, before a state can participate in this program, DCIA requires that the state enter into a reciprocal agreement with the Department of the Treasury that would require the state to collect unpaid federal debt from state payments if Treasury collects unpaid state debt from federal payments. In February 2004, we reported that Department of Defense (DOD) and Internal Revenue Service (IRS) records showed that over 27,000 DOD contractors had nearly $3 billion in unpaid federal taxes as of September 30, 2002. In a hearing before the Senate Permanent Subcommittee on Investigations on February 12, 2004, we noted that many of those contractors also had unpaid state taxes. Based on the issues raised in that hearing, Congress requested that we determine (1) the extent to which Financial Management Service (FMS) and the states have entered into reciprocal agreements to collect unpaid state and federal debt from their payments to contractors and (2) whether additional opportunities may exist for the Department of the Treasury's FMS to collect unpaid …

A letter report issued by the Government Accountability Office with an abstract that begins "With the number of airplane passengers using U.S. airports expected to grow to almost 1 billion by the year 2015, ground access to U.S. airports has become an important factor in the development of our nation's transportation networks. Increases in the number of passengers traveling to and from airports will place greater strains on our nation's airport access roads and airport capacity, which can have a number of negative economic and social effects. U.S. transportation policy has generally addressed these negative economic and social effects from the standpoint of individual transportation modes and local government involvement. However, European transportation policy is increasingly focusing on intermodal transportation as a possible means to address congestion without sacrificing economic growth. This report addresses the development of intermodal capabilities at U.S. airports, including (1) the roles of different levels of government and the private sector; (2) the extent such facilities have been developed; (3) benefits, costs, and barriers to such development; and (4) strategies to improve these capabilities. GAO provided a draft of this report to the Department of Transportation (DOT) and Amtrak. DOT generally concurred with the report, and …

Testimony issued by the Government Accountability Office with an abstract that begins "A successful terrorist attack on a Department of Energy (DOE) site containing nuclear weapons material could have devastating effects for the site and nearby communities. DOE's Office of the Under Secretary for Energy, Science and Environment (ESE), which is responsible for DOE operations in areas such as energy research, manages five sites that contain weapons-grade nuclear material. A heavily armed security force equipped with such items as automatic weapons protects ESE sites. GAO was asked to examine (1) the extent to which ESE protective forces are meeting DOE's existing readiness requirements and (2) the actions DOE and ESE will need to take to successfully defend against the larger, revised terrorist threat identified in the October 2004 design basis threat (DBT) by DOE's implementation deadline of October 2008."

Testimony issued by the Government Accountability Office with an abstract that begins "The Advanced Technology Program (ATP) supports research that accelerates the development of high-risk technologies with the potential for broad-based economic benefits for the nation. Under the program, administrators at the National Institute of Standards and Technology are to ensure that they do not fund research that would be conducted in the same period without ATP funding. Between 1990 and September 2004, ATP funded 768 projects at a cost of about $2.3 billion. There is a continuing debate over whether the private sector has sufficient incentives to undertake research on high-risk, high-payoff emerging technologies without government support, such as ATP. This testimony discusses the results of GAO's April 2000 report, Advanced Technology Program: Inherent Factors in the Selection Process Could Limit Identification of Similar Research (GAO/RCED-00-114) and provides updated information. GAO determined (1) whether ATP had funded projects with research goals that were similar to projects funded by the private sector and (2) if ATP did, whether its award selection process ensures that such research would not be funded in the future."

A letter report issued by the Government Accountability Office with an abstract that begins "Increasing computer interconnectivity has revolutionized the way that our government, our nation, and much of the world communicate and conduct business. While the benefits have been enormous, this widespread interconnectivity also poses significant risks to our nation's computer systems and, more importantly, to the critical operations and infrastructures they support. The Homeland Security Act of 2002 and federal policy established DHS as the focal point for coordinating activities to protect the computer systems that support our nation's critical infrastructures. GAO was asked to determine (1) DHS's roles and responsibilities for cyber critical infrastructure protection, (2) the status and adequacy of DHS's efforts to fulfill these responsibilities, and (3) the challenges DHS faces in fulfilling its cybersecurity responsibilities."

Testimony issued by the Government Accountability Office with an abstract that begins "The digital television (DTV) transition offers the promise of enhanced television. At the end of the transition, radiofrequency spectrum currently used for analog broadcast television will be used for other wireless services and for critical public safety services. To spur the digital transition while preventing any loss of television service to households, some industry participants and experts have suggested that the government subsidize DTV equipment to enable households to view digital broadcast signals. This testimony provides information on (1) some challenges to administering a subsidy program for DTV equipment, (2) some administrative options for implementing a DTV subsidy, (3) examples of government programs that make use of rebates or vouchers to provide subsidies, and (4) other efforts necessary for the completion of the DTV transition. We discussed administrative challenges to and options for a DTV subsidy with federal and state government officials, electronics manufacturers and retailers, and experts in product promotion. As in our previous work, we take no position on whether a subsidy should be implemented or not, or whether, if a subsidy program is established, it should be implemented in any particular way. While policies other …

A letter report issued by the Government Accountability Office with an abstract that begins "Established in 1934 to enforce the securities laws and protect investors, the Securities and Exchange Commission (SEC) plays an important role in maintaining the integrity of the U.S. securities markets. Pursuant to the Accountability for Tax Dollars Act of 2002, the SEC is required to prepare and submit to Congress and the Office of Management and Budget audited financial statements. GAO agreed, under its audit authority, to perform the initial audit of SEC's financial statements. GAO's audit was done to determine whether, in all material respects, (1) SEC's fiscal year 2004 financial statements were reliable, (2) SEC's management maintained effective internal control over financial reporting and compliance with laws and regulations, and (3) SEC's management complied with applicable laws and regulations."

Testimony issued by the Government Accountability Office with an abstract that begins "U.S. Customs and Border Protection (CBP) has in place two programs to help address the threat posed by terrorists smuggling weapons of mass destruction (WMD) into the United States: the Customs-Trade Partnership Against Terrorism (C-TPAT) and the Container Security Initiative (CSI). In July 2003, GAO reported that these programs had management challenges that limited their effectiveness. Given plans to expand both programs, in two recently issued reports GAO examined selected aspects of both programs' operations. This statement is a summary of those publicly available reports."

Testimony issued by the Government Accountability Office with an abstract that begins "Vaccine shortages and distribution problems during the 2004-2005 influenza season raised concerns about the nation's ability to respond to a worldwide influenza epidemic--or influenza pandemic--which many experts believe to be inevitable. Some experts believe that the next pandemic could be spawned by the recurring avian influenza in Asia. If avian influenza strains directly infect humans and acquire the ability to be readily transmitted between people, a pandemic could occur. Modeling studies suggest that its effect in the United States could be severe, with one estimate from the Centers for Disease Control and Prevention (CDC) ranging from 89,000 to 207,000 deaths and from 38 million to 89 million illnesses. GAO was asked to discuss surveillance systems in place to identify and monitor an influenza pandemic and concerns about preparedness for and response to an influenza pandemic. This testimony is based on GAO's 2004 report on disease surveillance; reports and testimony on influenza outbreaks, influenza vaccine supply, and pandemic planning that GAO has issued since October 2000; and work GAO has done in May 2005 to update key information."

Testimony issued by the Government Accountability Office with an abstract that begins "Since the unprecedented flight delays in 2000, a year in which one in four flights were delayed, our aviation system has been adversely affected by many unanticipated events--such as the September 11th terrorist attacks, and Severe Acute Respiratory Syndrome (SARS)--that significantly reduced the demand for air travel. However, demand for air travel is rebounding. For example, the number of passengers traveling by air increased from 642 million in 2003 to 688 million in 2004. Flight delays have been among the most vexing problems in the national transportation system and are defined by the Department of Transportation as instances when aircraft arrive at the gate 15 minutes or more after scheduled arrival time. In 2004, one in five flights were delayed primarily at New York La Guardia and Chicago O'Hare. Delays at these airports have consequences for the rest of the system. GAO's testimony addresses the following questions that pertain to flight delays and enhancing capacity: (1) What initiatives are ongoing by the federal government, airlines, and airports to address flight delays and enhance capacity? (2) What are some of the challenges in reducing flight delays and enhancing capacity? …

Testimony issued by the Government Accountability Office with an abstract that begins "Before 1969, IRS required hospitals to provide charity care to qualify for tax-exempt status. Since then, however, IRS has not specifically required such care, as long as the hospital provides benefits to the community in other ways. Seeking a better understanding of the benefits provided by nonprofit hospitals, Congress requested that GAO examine whether nonprofit hospitals provide levels of uncompensated care and other community benefits that are different from other hospitals. This statement focuses on, by ownership group, hospitals' (1) provision of uncompensated care, which consists of charity care and bad debt, and (2) reporting of other community benefits. The hospital ownership groups were (nonfederal) government, nonprofit, and for-profit. To compare the three hospital ownership groups, GAO obtained 2003 data from five geographically diverse states with substantial representation of the three ownership groups in each state. GAO analyzed cost data from two perspectives--each hospital group's percentage of (1) total uncompensated care costs in a state and (2) patient operating expenses devoted to uncompensated care."

Testimony issued by the Government Accountability Office with an abstract that begins "The Nuclear Regulatory Commission (NRC) has the regulatory responsibility to, among other things, ensure that the nation's 103 commercial nuclear power plants are operated in a safe and secure manner. While the nuclear power industry's overall safety record has been good, safety issues periodically arise that threaten the credibility of NRC's regulation and oversight of the industry. Recent events make the importance of NRC's regulatory and oversight responsibilities readily apparent. The terrorist attacks on September 11, 2001, focused attention on the security of facilities such as commercial nuclear power plants, while safety concerns were heightened by shutdown of the Davis-Besse nuclear power plant in Ohio in 2002, and the discovery of missing or unaccounted for spent nuclear fuel at three nuclear power plants. GAO has issued a total of 15 recent reports and testimonies on a wide range of NRC activities. This testimony (1) summarizes GAO's findings and associated recommendations for improving NRC mission-related activities and (2) presents several cross-cutting challenges NRC faces in being an effective and credible regulator of the nuclear power industry."

A letter report issued by the Government Accountability Office with an abstract that begins "Emerging domestic and international threats have generated a growing interest in the use of less-than-lethal weapons by government and law enforcement agencies and other entities such as commercial airlines. One such weapon--the Taser--is a hand-held weapon that delivers an electric shock via two stainless steel barbs, effectively incapacitating an individual. According to the manufacturer--Taser International, Incorporated (Taser International)--Tasers are currently used by over 7,000 of the 18,000 law enforcement agencies in the United States, with more than 140,000 Tasers in use by police officers in the field and an additional 100,000 Tasers owned by civilians worldwide. Tasers have been used on over 100,000 volunteers, including individuals involved in training seminars and research experiments, and involved in over 70,000 actual field uses during police encounters. In light of the expanding interest in the Taser, GAO was asked to provide information on (1) the policies and procedures related to the issues of "use-of-force," training, operations, and safety for selected law enforcement agencies that have purchased and used Tasers and (2) federal, state, and local laws that specifically address Tasers, including the Transportation Security Administration's (TSA) authority to regulate …

Testimony issued by the Government Accountability Office with an abstract that begins "The Chairman, Committee on Veterans' Affairs, U.S. Senate, asked GAO to testify on the current state of VA's disability claims process and factors that may impede VA's ability to improve performance. For years, the claims process has been the subject of concern and attention within VA and by the Congress and veterans service organizations. Many of their concerns have focused on long waits for decisions, large claims backlogs, and the accuracy of decisions. Our work and recent media reports of significant discrepancies in average disability payments from state to state have also highlighted concerns over the consistency of decision-making within VA. In January 2003, GAO designated federal disability programs, including VA's compensation and pension programs, as a high-risk area because of continuing challenges to improving the timeliness and consistency of its disability decisions, and the need to modernize programs."